Historical foundations of management provide context for current problems and ways of thinking about trends. Key forces that influenced management over time include social, political, and economic factors. Early management theories emerged during the Industrial Revolution and included scientific management, bureaucracy, and administrative principles. Later, human relations and behavioral science perspectives emphasized the human element. Management science applied quantitative techniques. Current trends reflect systems thinking, contingency views, and quality management focusing on continuous improvement.

1. Historical Foundations of
Management

2. It gives executives a way of thinking, a way of
searching for patterns and understanding
trends. It provides a context or environment
in which to interpret current problems.
Forces: Social, political, economic
Why is history Important?

3. Management and Organization
• Social Forces:
– The aspect of culture that guide and influence relationship
among people – their values, needs and standard of
behaviors ( Sindhi Values, American Culture, African
Culture)
• Political Forces:
– The influence of political and legal institution on
organization and people ( Courts, Company Reg.Act 1973,
Labor Law)
• Economic Forces:
– Allocation of Resources, Employment, Inflation etc

4. Historical Background Of Management
• Organizations Have Existed for Thousands of Years
– testifies to the existence of early management practice
• ability to create the Pyramids, Great Wall of China
• Significant Pre-Twentieth-Century Events
– Wealth of Nations - Adam Smith
• division of labor - breakdown of jobs into narrow and repetitive
tasks increased productivity
– Industrial Revolution
• substitution of machine power for human power
• large organizations required formal management

5. Development Of Major Management Theories
Historical
Background Scientific
Management
General
Administrative
Theorists
Quantitative
Approach
Management Theories
Industrial
Revolution
Adam Smith
Early Advocates
Hawthorne Studies
Organizational
Behavior
Early Examples
of Management

6. Management Approaches
• Classical
• Humanistic
• Management Science
• Recent Trends
– Systems Theory
– Contingency View
– Total Quality Management

7. First Perspective:
CLASSICAL

8. Classical Perspective
• Emerged during the 19th and 20th centuries
• Factory systems appearing in 1800’s
• Problems:
– Tooling the plants
– Organizing managerial structure
– Training employees (many immigrants)
– Scheduling complex manufacturing operations
– Increased labor dissatisfaction; strikes

9. Classical Approaches
• Scientific Management
– Frederick Winslow Taylor (1856-1915)
– Henry Gantt
– Frank B. and Lillian M. Gilbreth
• Bureaucratic Organizations
– Max Weber (1864-1920)
• Administrative Principles
– Henri Fayol (1841-1925)
– Mary Parker Follett (1868 – 1933)
– Chester I. Barnard (1886-1961)

10. Scientific Management
Classical Perspective

11. Frederick Taylor, Engineer Father of
Scientific Management
• Problem in labor productivity lies with poor management
practices, not labor.
• Manner of change can be determined only by scientific
study.
• Replace rules of thumb and tradition with precise
procedures developed after careful study.
• Work with Bethlehem Steel plant in 1898

12. Henry Gantt
• Gantt Chart – a bar graph that measures planned and
completed work along each stage of production by
time elapsed.

13. Frank B. Gilbreth
(1868 – 1924)
• Pioneered time and motion study
• Stressed efficiency; “one best way” to do work.
• Early work with bricklayers
• Greatest impact on medical surgery by drastically
reducing the time patients spent on the operating
table.

14. Lillian M. Gilbreth
1878-1972
• Widowed in 1924 with 12 children, ages 2 – 19.
• “First Lady of Management”
• Pioneered in the field of industrial psychology and
made substantial contributions to human resource
management.

15. Bureaucratic Organizations
Classical Perspective

16. Max Weber, German Theorist
• Envisioned organizations managed on an impersonal, rational
basis.
• An organization based on rational authority would be more
efficient and adaptable to change.
• Employee selection and advancement based on competence.
• Rely on rules and written records for continuity.
• Manager relies on legal power of his/her position instead of
personality.

17. EXHIBIT 2.4: WEBER’S IDEAL BUREAUCRACY
2-17

18. Administrative Principles
Classical Perspective

19. Henri Fayol, French Engineer
• General and Industrial Management
• Proposed 14 general principles of management
– Unity of command (one supervisor)
– Division of work (specialization)
– Unity of direction (group similar activities)
– Scalar chain (chain of authority)

20. Mary Parker Follett
• Trained in philosophy and political science
• Stressed the importance of people rather than engineering
techniques
• “Don’t Hug Your Blueprints”
• Analyzed dynamics of management-organization interactions
• Addressed ethics, power and leadership
• Proposed concept of empowerment

21. Chester I. Barnard
• Studied Economics at Harvard; no degree
• President of New Jersey Bell in 1927
• Proposed the concept of the informal organization
• Includes cliques and naturally occurring social groupings
• Acceptance theory of authority – people have free will and
can choose whether to follow management orders.

22. Second Perspective:
Humanistic

23. Humanistic Perspective
• Human Relations Movement
– Hawthorne Studies (1927-1932), Western Electric
Hawthorne Works in Chicago
– CIL, Thomas Edison, Honorary Chair, 1924-1927
– Elton Mayo, Harvard Business School examined
productivity and work conditions
• Human Resources Perspective
– Abraham Maslow (1908-1970)
– Douglas McGregor (1906-1964)
• Behavioral Sciences Approach

24. The Hawthorne Effect
• The rewards you reap when you pay attention to
people. The mere act of showing people that you’re
concerned about them usually spurs them to better
job performance.
• When people spend a large portion of their time at
work, they must have a sense of belonging, of being
part of a team.

25. Hawthorne Studies
• 1895 – struggle develops between manufacturers of gas and
electric lighting fixtures for control of the residential and
industrial market.
• More light results in more productivity, they say
• 6 year Study Result: Money was not the cause of the
increased output. Employees’ output increased sharply when
managers treated them in a positive manner.

26. The Human Relations Movement
Humanistic Perspective
The human relations school of thought considers
that truly effective control comes from within the
individual workers rather than from strict,
authoritarian control.

27. The Human Resources
Perspective
Humanistic Perspective

28. Abraham Maslow, Psychologist
• Observed that patients’ problems stemmed from inability to
satisfy their needs.
• Proposed a hierarchy of needs
– Physiological needs
– Safety
– Belongingness
– Esteem
– Self-actualization
• Basis for motivational techniques

29. Douglas McGregor, College President
• Challenged assumptions about human behavior based on
his experiences as a manager, consultant, his training as a
psychologist, and Maslow’s work.
• Theory X and Theory Y
• Workers are best described by Theory Y
• Take advantage of the imagination and intellect of all
employees.

30. Behavioral Sciences Approach
Humanistic Perspective

31. Behavioral Sciences Approach
• It is based on scientific methods and study.
• Draws from sociology, psychology, anthropology,
economics and other disciplines to understand
employee behavior and interaction in an
organizational setting.
• Impacts motivation, communication, leadership and
human resource management.

32. Third Perspective:
Management Science

33. Management Science Perspective
• World War II created sophisticated tools for modern global
warfare.
• Applies mathematics, statistics and other quantitative
techniques to management decision-making and problem-
solving.
• Operations Research
• Operations Management
• Management Information Systems

34. Fourth Perspective:
Emerging Trends
Systems Theory
Contingency View
Total Quality Management (Deming)

35. Systems Theory
• A set of interrelated parts that function as a
whole to achieve a common purpose.
– Inputs
– Transformation process
– Outputs
– Feedback
– Environment

36. System Theory : Current Theories
• System: A set of related parts that work together in order to achieve a
common objective
• Open System: A system that interact with external environment
• Close System: A system that does not interact with environment.
• Entropy: A tendency of system to run down or die
• Synergy: In organization every department depends upon each other
• Subsystems: Parts of system that depend upon each other.

37. Contingency View
• Universalist View (classical perspective) – management
concepts are universal
• Case View – Each situation is unique.
• Contingency View – A manager’s response depends on
identifying key variables in an organizational situation. What
works in one setting may not work in another. Contingencies
include the environment, industry, technology and
international cultures.

38. Total Quality Management
• Shift from inspection approach to quality control emphasizing
employee involvement in the prevention of quality problems.
• Managing the total organization to deliver quality to customers.
• Significant Elements of TQM
– Employee involvement
– Focus on the customer
– Benchmarking
– Continuous improvement

39. Dr. W. Edwards Deming (1900-1993)
“Father of Quality Movement”
• Developed theory and methods to improve the
quality an dependability of manufactured products.
• Application of his work in Japan sparked the
Japanese Industrial Miracle-the transformation of
Japanese business

40. EXHIBIT 2.9: LEARNING ORGANIZATION VERSUS TRADITIONAL ORGANIZATION
2-40

41. Current Trends And Issues
• Learning Organizations and Knowledge Management
– Learning Organization - one that has developed the
capacity to continuously learn, adapt, and change
– create learning capabilities throughout the organization
• understanding that knowledge is an important resource
– Knowledge Management - involves cultivating a learning
culture where organizational members systematically gather
knowledge and share it with others in the organization so as
to achieve better performance
– managers must transform themselves from bosses to team
leaders
• learn to listen, motivate, coach, and nurture
2-41

42. Any Question